Hormel acquires iconic Skippy peanut butter line

AUSTIN, Minn. — Hormel Foods announced it has entered into a definitive agreement to acquire the Skippy peanut butter business from Unilever United States, of Englewood Cliffs, N.J.

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the United States and other jurisdictions.

"The acquisition of the Skippy peanut butter business represents a significant opportunity for Hormel Foods. It allows us to grow our branded presence in the center of the store with a non-meat protein product, and it reinforces our balanced portfolio," said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer at Hormel Foods. "The fast growing international line also will strengthen our global presence, and should be a useful complement to our sales strategy in China for the SPAM family of products."

The Skippy peanut butter domestic line consists of 11 varieties of shelf-stable peanut butter products. The brand, first introduced in 1932, holds the No. 2 share in this growing center of the store category and is the leading brand in the faster-growing subcategory of natural peanut butter. Peanut butter is a $2 billion category with a 74% household penetration and is the second most popular sandwich behind ham in the United States. Internationally, Skippy peanut butter is the leading brand in China and is sold in more than 30 other countries on five continents.

Total annual sales are expected to be approximately $370 million, with nearly $100 million of those sales outside the United States. The purchase price is approximately $700 million. Hormel Foods expects this acquisition to be modestly accretive in fiscal 2013. Full-year accretion in fiscal 2014 is expected to be between 13 and 17 cents per share.

Follow us on LinkedIn for the most in-depth coverage of drug store news.

Poll

Poll

SPECIAL REPORTS

Are we in the midst of a beauty revolution? Perhaps. It is no secret that the ever-changing beauty category is all about trends, but one could argue that we are embarking on an especially interesting time in beauty as technology is changing the way consumers shop and new innovations strive to break through the noise.

In this beauty report, Drug Store News takes a deeper dive into some of the leading trends that are reshaping beauty.more ...

IN THIS ISSUE

In this issue, DSN examines PricewaterhouseCoopers' "Top Health Industry Issues for 2015;" takes you on a tour of Murad, shares beauty trends and insights and delves into location-based technology and how it is revolutionizing health, retail.Click here to view the issue.